“The Bernanke Fed must be thinking about how we are going to cope with that debt. My bet is that we will cope with the debt through the device that the Fed is best at, and that device is steady, systematic inflation. The Fed probably thinks it can move inflation up to about 5% to 6% a year, and at the same time tell the American public that the phoney “core inflation rate” is only 2 to 3% a year. The Fed will use the “frog in the pot” method. Inflation will creep up annually at the rate of 6% a year and the ignorant American public won’t realize that their being silently robbed. “
